Absolutely, I think the airline industry in general will perform very well in 2015, regardless. I would agree AAL has made huge strides since its bankruptcy and certainly looks to be making a huge reemergence. I certainly am not bearish or against AAL by any means. However, I just want to be a little more on cautious side due to the airline industry's reputation of struggling when coming out of bankruptcies, mergers, acquisitions, etc. That is not to say AAL will have difficulties in particular, but I just would like to see a successful reemergence and back to sustainable profitability. However, that is just more of my investing style, error on side of caution. But you definitely bring up some good points and I definitely see AAL having a great 2015, along with the rest of the industry.

I personally just see some more time needed to AAL to reemerge from bankruptcy and getting back on track. The company is still getting hubs together and cutting older hubs to be more efficient. While I do think AAL could be a good buy in the next year or so, I think there are better plays out there right now. United Continental is a prime example of struggling to consolidate and growing pains. Fast forward few year to today, United Continental has seemed to fix its bugs and relatively on track.

That being said, I think LUV and SAVE are customer favorites that continue to gain on good customer service and various corporate policies to attract more customers. Additionally, these two strive for lower fares, which is huge for the value seeker trying to fly. I still think LUV will be the best performing airliner of the bunch in 2015.

Should You Turn To Low-Volatility ETFs During Market Uncertainty? Part 1 [View article]

Small Pharma,

Yes, VDIGX would be another great way to play the bull market. There are endless number of funds that would be suitable candidates. However, for the purposes of this article, I chose to take a look at low volatility ETFs, which would allow a smaller capitalized investor to have a lower cost, properly allocated, and more control over diversification. Low volatility ETFs are a new concept and I think it is important to cover considering that this bull market continues to look sluggish and the Vix looks prime for a rip to the upside.

I haven't read the article from Barrons yet, but DDD along with other names in the space have gotten too far ahead of themselves over the past year. Investors are now weighing fact and reality and that is why the price has fallen almost $30 from its peak. However, the long term is certainly bright and I think this is a great long term hold as 3D printers will see increasing demand as prices come down and its functionality extends.

Should You Turn To Low-Volatility ETFs During Market Uncertainty? Part 1 [View article]

HilarinFelder,

Yes, you are correct. As I highlighted in my article, volatility has been nonexistent over the past 5 years, really since 2008. Most of these ETFs started up in past 2 years or so and since the markets had no real volatile movements, they underperformed slightly. However, as we have seen in recent weeks, volatility is coming back and I think as easing is taken off the table and this bull market grows older, these ETFs will start to outperform. It is my belief that these ETFs will help long term investors better withstand the future markets, while still remaining invested.

Should You Turn To Low-Volatility ETFs During Market Uncertainty? Part 1 [View article]

Larry,

Those are good holdings you have. Contains solid exposure to US and world markets, while helping take the edge off during time of uncertainty. I would agree with you that holding these ETFs makes sense in any market, due to the fact that at some point, the markets will face uncertainty and recession. Good picks! Stay tuned for my second part due out by monday hopefully.

Should You Turn To Low-Volatility ETFs During Market Uncertainty? Part 1 [View article]

Yes there are fears that further easing would hit dividend stocks. However, that would hit "high yielders" more hard such as utility stocks, preferred stocks, in addition to bonds and fixed income. Solid large cap dividend equities are for long term stability in the portfolio. And while they would be hit from loss of easing, everything in the market gets hit without easing because stimulus money is taken out of the market. This ETF finds the most conservative names out of that list of large cap dividend stocks and creating a portfolio of stocks that are suitable for protection during downtrends or periods of uncertainty.

Should You Turn To Low-Volatility ETFs During Market Uncertainty? Part 1 [View article]

keu4bike,

Certainly these investments could be held regardless of the state of the Vix, however as I stated in the article, if volatility is very low such as how it has been in the past 5 years, I would say your standard index funds would do the job. The low volatility ETFs really become a solid play and more advantageous than regular index funds during periods of increased Vix.

Technicals on the futures charts certainly say there is more upside potential and it appears that the continuing weakening of the yen is a major support to the bull's thesis. However, as you said, mixed data could be a problem if there is a larger slowdown beginning. Until more data proves otherwise, long USD.

A stronger dollar is bad news for gold bulls. With the USD at multiyear highs, stock markets rallying to all time highs in the US and Japan, there is less appeal for "safety" plays. Gold's long term stance still remains bullish as central banks continue to print money.

Yes, they are in the EU but they do not use the Euro. Therefore, since they have their own central bank and can set their own interest rates, monetary policy, etc, they have been able to relatively independent from the ECB and the bond program.

jefsut: As of right now, I am waiting to make a trade on UA until I get a confirmation of a breakout or breakdown. UA broke resistance but seems to be retesting it as support. If UA is able to form a base with the resistance turned support, we may continue to see higher prices. However, with the principles described in this article and an overall weakening of the overall trend in the market, my guess is UA will have a hard time continuing to fly at high valuations.